If the price of a product increases and total revenue decreases, what does this indicate about the demand elasticity of that product?

When the price of a product goes up and the total revenue goes down, it means that the demand for that product is elastic. This means that customers are sensitive to price changes and will buy less of the product if the price increases. For example, if a popular brand of sneakers raises its price, many customers might decide not to buy them anymore and instead choose a cheaper brand. Because of this change, the company ends up making less money, showing that the demand is elastic. In simple terms, when prices rise and revenue falls, it indicates that people are willing to change their buying habits based on price.